Pensions Infrastructure Platform (PIP) launches £1 billion direct infrastructure fund

The Pensions Infrastructure Platform (PIP) has recently launched the PiP Multi-Strategy Infrastructure Fund with a target size of £1 billion (US$1.45 billion).

The fund will invest directly in UK infrastructure and aims to provide institutional investors with a degree of alignment and transparency. In order for smaller pension schemes, the fund will have a minimum commitment size that effectively allows schemes of any size to participate and achieve similar scale benefits as larger schemes.

The fund will be focused on core infrastructure within the following sectors:

• Transportation
• Renewable energy
• Utilities
• Communications
• Housing
• Social infrastructure

The fund has a long term buy-and-hold investment strategy to generate low risk. Investors can achieve their preferred investment exposure through the co-investment program and the fund’s sub-portfolios, which have different risk and return characteristics.

Mike Weston, PIP Chief Executive, commented:

“The launch of the Fund is further proof that investors believe that PIP works and is delivering on its promise. With the support of our Founding Investors we’ve already mobilized £1 billion for investment into UK infrastructure and with this Fund we are achieving our key objective of providing pension schemes of all sizes with an efficient route to direct ownership of infrastructure assets. We are a true long-term investor and this is reflected in the way we build our relationships with both our investors and developers – allowing us to secure the long-term, low-risk, inflation-linked cash flows that pension schemes need. And because we’re backed by pension schemes and understand their needs, we have been set up and structured to meet these needs in the best possible way.”